December 08, 2017

Listeners spend 87% of their AM/FM radio time tuned into one of their three favorite stations, according to the second-quarter 2017 Nielsen Total Audience Report. More importantly, 58% of their listening goes to just one station, the listener's P1, based on the amount of time spent with each. From there, according to the Nielsen report, listeners spend 19% of their traditional radio time with a second favorite and 10% with a third favorite station. Compared with media choices 10 years ago, audio options today are much more diverse, but AM/FM radio still reaches 93% of U.S. adults. And the majority of this listening takes place out of the home—more than two-thirds, in fact, “when people are working or close to the point of purchase when they’re shopping,” Nielsen points out.

Local ad dollars in the U.S. are on track for a big boost next year. The combination of a robust economy heading into 2018, a competitive political landscape and major growth in mobile/social media will push local ad spend up 5.2% to $151.2 billion in 2018. That’s the largest annual increase in five years, up from $140.9 billion in 2017, according to a fresh forecast from BIA Kelsey. Traditional media will gobble up nearly two thirds of the total or 64.7% with 35.3% earmarked for digital media. BIA/Kelsey defines local advertising as all advertising platforms that provide access to local audiences for national, regional and local marketers.

U.S. companies will spend $10.05 billion on third-party audience data this year, and $10.13 billion on solutions to support its activation, according to a study from The IAB Data Center of Excellence and the Data & Marketing Association, conducted by Winterberry Group. The total for data includes $3.5 billion on email addresses, names, street addresses ad other personally identifiable information (PII), grouped together under the heading “omnichannel.” It also covers $2.9 billion on transactional data and $2 billion on digital identifiers. Of the money spent on third-party solutions, $4.3 billion will be used to support data integration, processing and hygiene, the report sates.

Making the same bullish case he and other network executives have been making for years even as headwinds have picked up speed, CBS research guru David Poltrack added some new wrinkles to it, pointing to ad spending by tech giants and embrace of TV by millennials. RelatedCBS Cuts A Few Dozen Employees Across Broadcast Network And Syndication. In a 40-minute presentation at the 45th annual UBS Global Media and Communications Conference in New York, Poltrack proclaimed, “The broadcast business is entering a period of growth and prosperity.” Until 1992, he noted, broadcasters had a single revenue stream, but now enjoy billions in retransmission revenue and are also exploring direct-to-consumer opportunities.

Was 2017 podcasting's breakthrough year? That’s the belief of Bridge Ratings in its report “Podcast Report 2018,” part of the research firm’s comprehensive Digital Year in Review. Indeed, the ratings firm surmises: “Check off a year of amazing growth for podcasting as 2017 nears its end.” And wait until you read below about the new phenomenon known as “podFASTERS.” Looking ahead, according to Bridge, “2018 holds great promise as podcasting should see further development of search and metric tools to aid in increased usage and revenue when a confluence of technology, advertising and consumer interest boost momentum for the platform, which offers content for just about every taste and interest.”

December 01, 2017

Online retail sales were up 17.6% Thanksgiving morning over the same time last year, Adobe Inc reports, maintaining a trend of holiday e-commerce sales soaring in November. And, record numbers of consumers were shopping Thursday morning on their smartphones. As of 10 a.m. Eastern time, consumers had spent $360 million online. The 17.6% early year-over-year sales increase was in line with the 17.9% growth in online retail sales from Nov. 1 to Nov. 22 compared to the comparable period last year, the report says. Early Thanksgiving shoppers pulled out their smartphones to shop, and mobile phones alone accounted for a record 44.2% of early Thanksgiving Day traffic to retail websites, up 16% over last year, according to Adobe. The average ticket for Thursday’s orders was $137, 0.8%, higher than the pre-Thanksgiving. Conversion rate also was up across all devices.

The president of analytics firm Decentrix says that you can. By closely monitoring and analyzing the sale operation and taking action based on the data, a TV station "should reasonably expect" to grow spot revenue by more than 11% and achieve a return on its investment in the analytics within months. The broadcast industry has become a complicated place. In addition to dealing with an ongoing period of flat spot TV ad sales, broadcast stations face the prospect of declining ratings and increasing competition from over-the-top (OTT) providers. They are unsure about the true impact of “cord cutting” on their business. They realize they need to develop a strategy for moving into the world of ATSC 3.0, but they don’t know how to chart that course — or even what their end goal should be.

Early analysis of Black Friday sales appear to be nice and green. Online retail sales on Thanksgiving and Black Friday in the U.S. were up a staggering 17.9% from last year, hitting $7.9 billion, according to Adobe Analytics, which looks at sales at the 100 biggest web retailers in the U.S. For brick-and-mortar retail, research firm ShopperTrak said store traffic fell less than 1% on Black Friday, bucking industry predictions of a sharper decline. In-store sales still account for about 90% of retail purchases, according to the U.S. Census Bureau, although the balance is shifting rapidly. Adobe said $7.9 billion worth of merchandise was purchased online on Thursday and Friday, and expected Cyber Monday to be the largest online shopping day in history, with sales up nearly 17% to $6.6 billion. In fact, according to deals website RetailMeNot, the majority of Americans—56%—said they’ll shop on Cyber Monday, up from 39% last year. Shoppers were projected to spend an average of $205 that day, a 58% increase from last year’s $130.

More than 100 of the top executives in the TV advertising, media buying and marketing industries gathered in New York Tuesday morning (Nov. 28) to tackle issues around audience measurement and advertising effectiveness. The meeting was arranged by Linda Yacccarino, chair of advertising sales and client partnerships at NBCUniversal. The TV business has been facing issues involving viewers shifting to non-commercial programming on streaming and on-demand services like Netflix. It has also been struggling to measure viewership as more people watch on their own time and different digital devices. And they are challenge by digital competitors that promise data that does a better job of showing who they reach and how much reaction and sales they generate.

A majority of music radio listeners say “most commercials don’t apply” to them, according to the latest NuVoodoo Ratings Prospect Study. This theme has been magnified by the fact that these same consumers are served daily messages that focus on their browsing and online purchasing history. They see ads that are relevant to them and have come to expect that. In a blog post, NuVoodoo’s Leigh Jacobs suggests that taking a closer look at radio spot creative could lead to ads that are more relevant for the listening audience. “Stations need to be focused on keeping commercials relevant, interesting and, most importantly, effective,” Jacobs writes. “It’s critical to have as many bodies as possible inside clusters thinking about maximizing effectiveness of the commercials the stations play.” Jerry Lee, owner of AC “More FM at 101.1” WBEB Philadelphia is one of the industry’s strongest proponents for making commercials more engaging and effective.

November 17, 2017

After rolling out daily news shows from NBC News and CNN in recent months, Snapchat is teaming with ESPN to bring a regular sports show to the platform for the first time. But unlike the NBC News and CNN shows, ESPN’s new offering from Snapchat carries the name of one of the network’s biggest brands: SportsCenter. The show will debut on Snapchat today at 5 p.m. ET and will begin its regular schedule tomorrow, with new episodes available at 5 a.m. and 5 p.m. on weekdays, as well as 5 a.m. on weekends. Additional episodes will be produced as breaking news warrants. The Snapchat iteration of SportsCenter, which will be three to five minutes in length, will be hosted by several ESPN personalities, including Katie Nolan, who recently left Fox Sports for ESPN and will host today’s first show. Other hosts include SportsCenter anchor Elle Duncan, NBA commentator Cassidy Hubbarth, ESPN Radio host Jason Fitz, Sunday NFL Countdown features reporter Jac Collinsworth and comedian Cy Amundson.

Waitrose’s Holiday Ad Is a Monochrome Fantasy About Getting Snowed in With Strangers

Nothing says Christmas quite like a slew of British ads. And on the heels of John Lewis, Waitrose gives us its entry: “Snowed In.” Created by adam&eveDDB, the story follows three travelers struggling against snowfall as they make their way to a remote pub, packed with smiling strangers in Christmas sweaters (sorry, Diesel) congregated around a roaring fire. “We’re snowed in!” someone soon, inevitably, declares. Panic mixes with faces anticipating tedium as the electricity cuts out. Luckily, there’s a pantry packed with Waitrose goodies, and even a cookbook to help transform a dire circumstance into one of shared joy. There is cooking, collaboration and the celebration of togetherness. Just as the table is set, the lights return and a pair of men throw the door open. “Don’t worry! We got you out!” they cry, grinning gamely—only to meet the morose, befuddled expressions of people now torn between a return to normality and remaining in their charmed snowglobe.

Comcast and Sony reach a deal that will allow Comcast’s Xfinity TV customer to access the cable service through an app on Sony’s Android TV sets. The agreement expands the Xfinity Partner Program, which aims to make Comcast’s pay-TV service more valuable at a time when traditional cable companies are losing subscribers to streaming services and other digital entertainment products. "We remain focused on providing our customers with more choice and flexibility in how, when and where they access the content included with their Xfinity TV subscription,” said Mike Gatzke, VP, video subscription services, for Comcast Cable. “Providing our customers with the highest quality entertainment experiences across devices remains a top priority, so we are thrilled to partner with Sony to give our customers access to the Xfinity TV app directly on Sony Smart TVs.”

It's Time To Put The Consumer Front And Center In Publisher, Advertiser World

All the discussion about programmatic advertising has typically focused on the relationship between advertisers and publishers with the consumer a distant third. Even the terms used to describe consumers’ interactions with digital advertising (target audiences, demographics, brand impressions, viewability statistics) paint a rather analytical definition, removing the human characteristic from the discussion. It’s time to put the consumer front and center of digital advertising. With the proliferation of ad blocking, it’s becoming increasingly obvious (and worrisome) to advertisers and publishers that we are losing consumers’ interest and acceptance of digital advertising.

More consumers are listening to music than ever—and they continue to rely upon radio as their primary means of discovery. The latest study from Nielsen Music shows that some 90% of the population listens to music and that, on average, they do so 32.1 hours a week. That's up from 86% in the previous annual study, when listening time averaged 26.6 hours a week. The newly released Nielsen Music 360 2017 U.S. Report also finds traditional radio continues to be the No. 1 means of finding new music. It reveals that among top sources, AM/FM “over the air radio” is preferred by 49%. Second for music discovery is “friends and relatives” at 40%, followed by online music services at 27% and social media at 25%. Breaking it down further, the report says that among the general population who discover music via these radio sources, 49% utilize AM/FM over the air—an increase of 2% over 2016—while 23% depend on AM/FM radio online, up from 19% year over year; while 14% go to satellite radio, up 3% from 2016.

More than nine months after CBS Radio and Entercom first announced their intention to merge, the landmark deal has closed. The transaction, radio’s largest in more than a decade, makes Entercom the second largest radio station owner with 244 stations in 47 markets, including 23 of the top 25. As expected, the closing occurred the morning after the exchange offer for CBS shareholders to swap shares of CBS Class B common stock for shares of CBS Radio expired at 11:59 pm, New York City time. The CBS Radio shares automatically convert into an equal number of shares of Entercom stock. “We are thrilled to officially close our transformational merger with CBS Radio and welcome their talented employees and iconic brands to Entercom,” Entercom president and CEO David Field said in a news release ahead of a planned welcome meeting for employees of Entercom’s new Philadelphia cluster in the company’s home base. “We look forward to capitalizing on our unique positions in sports, news, music, podcasting, live events, digital and more to provide outstanding experiences for our listeners and compelling integrated marketing opportunities for our advertisers.

November 10, 2017

The second season of Brandwidth On Demand is starting as a year of ‘firsts”. Our first confab coverage (Morning Show Boot Camp), and this time, our first ‘dual guest’ episode. Fred Jacobs is well known as one of radio’s leading visionaries. His JACOBS MEDIA created the Classic Rock format and with the initiation of the annual benchmark Jacobs Tech Survey, he’s been acclaimed as a pioneer in the connected car movement, and overseen the growth of their JACApps division. Steven Goldstein is recognized as a thought leader in audio programming, marketing and management. His track record of success spans virtually every major radio format for some of the nation's top broadcasting companies. He was a co-founding partner in Saga Communications, serving as Executive Vice President and Group PD from 986 until 2015, when he founded Amplifi Media.

The spirit of the Buddhist riddle applies to radio and smart speakers: If a station creates an Alexa skill but no one is around to hear it, does it make a sound? In short, creating the skill is a waste unless you do your utmost to market it, which leads directly to listener engagement. “The skill is meaningless if you’re not promoting it in the right ways and training your audience how to interact with it,” says Daniel Anstandig, CEO of broadcast technology provider Futuri Media. Adds president of Market Development for Triton Digital John Rosso, “Stations have the biggest reach megaphone in media. That’s the very first box you have to check. But there are also all of a station’s social channels, including the station itself, talent and networks. Use every potential channel to get the word out.” And smart speakers are the channel du jour of late, promising to get AM/FM back to a prominent place in the home. Not only are they growing in consumer acceptance at a faster rate than smartphones, but Strategy Analytics predicts Q4 sales will reach 12 million units, bringing the full-year total to 24 million units—a 300%+ year-over-year increase. That will push penetration well past the already impressive 7% in-home usage reported by Edison Research in February 2017.

Because of new breakthroughs in data and technology, the elements of targeting, reach and recency can significantly affect sales outcome of a campaign. In fact, the effect of media on sales has increased to 36% from 15% over the past 11 years. That comes according to research from Nielsen Catalina Solutions. While creative still reigns as the most important factor in delivering effective advertising, new ad technology and the expansion of ad channels are expanding the criteria for a winning campaign. “Because of new breakthroughs in data and technology, the elements of targeting, reach and recency can significantly affect sales outcome of a campaign,” the report notes. However, brand-related components, including creative, still account for the bulk of a campaign’s success. Creative currently represents 47% of a campaign’s effectiveness, while context is 2% and brand 15%, Nielsen Catalina reported.

Historically, the team to deliver an awe-inspiring creative vision was composed of copywriters, art directors, producers and directors, each concept born in the creative department and matured through production. Luckily for innovators outside of those departments, today’s winning creative concepts are grounded in data: tapping science, analytics, and technology to deliver an innovative output that transcends previous barriers of traditional campaigns where creative was driven by data and insights, not only look and feel. Analytics and technology, once seen as “added value” disciplines within the advertising industry, have proven to be pivotal to campaign success and inextricably linked to innovation.

Is virtual playout from a public cloud an economical and reliable option for broadcasting master control? Sinclair Broadcast Group is aiming to find out. Earlier this month, 51 Sinclair stations began using cloud-based playout to broadcast each morning a three-hour block of children’s programming with a full commercial load. The stations aired one of four time-zone feeds. (Some 70 other stations receive the block as part of Tribune-MGM's This TV.) For the pioneering project, Microsoft Azure is the supplying the cloud; Imagine Communications, the software; and LTN Global Communications, the high-speed downstream link to the stations. So far, so good, says Del Parks, chief technology officer at Sinclair. “It’s been pretty bulletproof. It’s providing us with an opportunity to experience the system and work through some of its idiosyncrasies.”

Nielsen said it reached an agreement to use data from Comcast’s set-top boxes in its local TV ratings service. At a time when big data is becoming a bigger part of audience measurement, Nielsen now has access to viewing information from four of the major cable and satellite providers. More granular data could help transform how local advertising is bought and sold. “Our enhanced Local TV measurement strategy combines the best elements from Nielsen’s high-quality panels with set-top box data from Comcast and other providers in an anonymous way,” said Megan Clarken, Global President of Watch at Nielsen. “We are continuously innovating our local measurement solutions and leveraging all data sources to deliver a comprehensive service that offers true local market insights and showcases the power of local television. We are pleased to add Comcast to our list of local set-top box data providers.”

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